Ben has an individual disability income policy. Which of the following is true?

Ben has an individual disability income policy. Which of the following is true?



a. Premiums are not tax-deductible, but benefits are received tax-free.

b. Premiums are tax-deductible, but benefits are taxable.

c. Premiums are tax-deductible and benefits are tax-free.

d. Premiums are not tax-deductible and benefits are taxable.



Answer: a. Premiums are not tax-deductible, but benefits are received tax-free.

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